In a Statement Reported in the New York Times,Lars Bjork,CEO

question 70

Multiple Choice

In a statement reported in the New York Times,Lars Bjork,CEO of Qliktech,remarked that he appreciates the order that bureaucracy can bring to an organization;however,when adding order to a process,the employees involved need to understand why that order is being implemented.It has to make sense.With this in mind,which of the following statements would be of great concern to this CEO?

• A)Structure and order,better known as bureaucracy,have no place in an entrepreneurial organization.
• B)Adding structure and order to processes within a company will eventually lead to a larger,more bureaucratically led organization.
• C)When you start to put structure and order in an entrepreneurial organization,you need to be careful not to go overboard.
• D)Rules,structure,and order in any organization need an overhaul every few years,just to make certain that all employees are following the same procedures.

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Definitions:

Equivalent Units

A concept in cost accounting used to calculate the work done on partially completed goods, expressed in terms of fully completed units.

Cost Reconciliation Report

A document used to reconcile and verify the costs incurred by a department or project against the budgeted or expected costs.

Work In Process Inventory

Inventory that represents partially completed goods which are still in the production process.

Added To Production

Refers to the materials, labor, or overhead costs that are incorporated into the manufacturing process to produce goods.